Room 39
Encyclopedia
Room 39 is a secretive Democratic People's Republic of Korea government organization that seeks ways to maintain the foreign currency slush fund
of North Korea's leader Kim Jong-il
.
The organization holds as much as $5 billion in funds, and may be involved in illegal activities, such as counterfeiting $100 bills (see Superdollar
), manufacturing illegal drugs (Namely crystal meth and heroin) and international insurance fraud.
Although the seclusion of the North Korean state makes it difficult to evaluate this kind of information, many claim that Room 39 is critical to Kim Jong-il
's continued power, enabling him to buy political support and to help fund North Korea's nuclear weapons program.
Room 39 is believed to be located inside a ruling Workers' Party building in Pyongyang
, not far from Mr. Kim's villa.
In early 2010, South Korea
's Yonhap news agency
reported that Kim Jong Un, head of the department, was replaced by his deputy, Jon Il Chun.
The Chosun Ilbo reported that Room 38, led by Kim Tong-il was merged into Room 39 in late 2009, but then the two were split again in 2010 due to difficulties in obtaining foreign currency.
and Switzerland
for the purposes of counterfeiting, money laundering
and other illicit transactions. It is also alleged that Room 39 is involved in drug smuggling and illicit weapon sales. It is known, however, that the organization has 120 foreign trade companies under its jurisdiction and is under the direct control of Kim Jong-il
. North Korea has denied taking part in any illegal activities. Room 39 is also involved in the management of foreign currency earnings from foreigners' hotels in Pyongyang, gold and zinc mining, and agricultural and fisheries exports. Companies believed to be controlled by Room 39 include Zokwang Trading
and Taesong Bank.
A 2007 report published by the Millennium Project of the World Federation of United Nations Associations said North Korea makes an estimated $500 million to $1 billion annually from criminal enterprises.
In 2009, a Washington Post report outlined a global insurance fraud scheme by the North Korean government. The state-owned Korea National Insurance Corp sought reinsurance
contracts with international reinsurers and then submitted fraudulent claims; the contracts were governed by North Korean law and legal challenges were fruitless.
Room 39 is also believed to be operating an overseas North Korean restaurant chain, Pyongyang
.
Slush fund
A slush fund, colloquially, is an auxiliary monetary account or a reserve fund. However, in the context of corrupt dealings, such as those by governments or large corporations, a slush fund can have particular connotations of illegality, illegitimacy, or secrecy in regard to the use of this money...
of North Korea's leader Kim Jong-il
Kim Jong-il
Kim Jong-il, also written as Kim Jong Il, birth name Yuri Irsenovich Kim born 16 February 1941 or 16 February 1942 , is the Supreme Leader of the Democratic People's Republic of Korea...
.
The organization holds as much as $5 billion in funds, and may be involved in illegal activities, such as counterfeiting $100 bills (see Superdollar
Superdollar
A superdollar or superbill is a very high quality counterfeit United States one hundred-dollar bill, alleged by the U.S. Government to have been made by an unknown organization or government. Various groups have been suspected of creating such notes, and international opinion on the origin of the...
), manufacturing illegal drugs (Namely crystal meth and heroin) and international insurance fraud.
Although the seclusion of the North Korean state makes it difficult to evaluate this kind of information, many claim that Room 39 is critical to Kim Jong-il
Kim Jong-il
Kim Jong-il, also written as Kim Jong Il, birth name Yuri Irsenovich Kim born 16 February 1941 or 16 February 1942 , is the Supreme Leader of the Democratic People's Republic of Korea...
's continued power, enabling him to buy political support and to help fund North Korea's nuclear weapons program.
Room 39 is believed to be located inside a ruling Workers' Party building in Pyongyang
Pyongyang
Pyongyang is the capital of the Democratic People's Republic of Korea, commonly known as North Korea, and the largest city in the country. Pyongyang is located on the Taedong River and, according to preliminary results from the 2008 population census, has a population of 3,255,388. The city was...
, not far from Mr. Kim's villa.
History
Room 39 was established in the late 1970s. It has been described as the lynchpin of the North's so-called "court economy" centered on the dynastic Kim family. It is unknown how the name originated.In early 2010, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
's Yonhap news agency
Yonhap
Yonhap News Agency is South Korea's largest news agency. It is a publicly-funded company, and based in Seoul, South Korea. Yonhap supplies domestic, foreign news and other information to newspaper, TV broadcast and other media in South Korea.-History:...
reported that Kim Jong Un, head of the department, was replaced by his deputy, Jon Il Chun.
The Chosun Ilbo reported that Room 38, led by Kim Tong-il was merged into Room 39 in late 2009, but then the two were split again in 2010 due to difficulties in obtaining foreign currency.
Purpose and activities
Very little is known about Room 39 due to the secretive nature surrounding the organization, but it is widely speculated that the organization uses 10 to 20 bank accounts in ChinaChina
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
for the purposes of counterfeiting, money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and other illicit transactions. It is also alleged that Room 39 is involved in drug smuggling and illicit weapon sales. It is known, however, that the organization has 120 foreign trade companies under its jurisdiction and is under the direct control of Kim Jong-il
Kim Jong-il
Kim Jong-il, also written as Kim Jong Il, birth name Yuri Irsenovich Kim born 16 February 1941 or 16 February 1942 , is the Supreme Leader of the Democratic People's Republic of Korea...
. North Korea has denied taking part in any illegal activities. Room 39 is also involved in the management of foreign currency earnings from foreigners' hotels in Pyongyang, gold and zinc mining, and agricultural and fisheries exports. Companies believed to be controlled by Room 39 include Zokwang Trading
Zokwang Trading
Zokwang Trading Company is a North Korean state-run import-export business based in Zhuhai, China. It is reportedly controlled by Room 39, a secret department of the government of North Korea....
and Taesong Bank.
A 2007 report published by the Millennium Project of the World Federation of United Nations Associations said North Korea makes an estimated $500 million to $1 billion annually from criminal enterprises.
In 2009, a Washington Post report outlined a global insurance fraud scheme by the North Korean government. The state-owned Korea National Insurance Corp sought reinsurance
Reinsurance
Reinsurance is insurance that is purchased by an insurance company from another insurance company as a means of risk management...
contracts with international reinsurers and then submitted fraudulent claims; the contracts were governed by North Korean law and legal challenges were fruitless.
Room 39 is also believed to be operating an overseas North Korean restaurant chain, Pyongyang
Pyongyang (restaurant chain)
Pyongyang is a chain of restaurants in Asia operated by the North Korean government, for whose capital the restaurants are named. Pyongyang restaurants are found mainly in China near the North Korean border, but in the 2000s the chain has been expanding into South East Asian cities including...
.
Room 39 in fiction
Room 39 is featured :- as a low level enemy faction in the video game "Mercenaries: Playground of DestructionMercenaries: Playground of DestructionMercenaries: Playground of Destruction is a third-person shooter video game developed by Pandemic Studios and published on January 11, 2005 by LucasArts for PlayStation 2 and Xbox...
", where they are referred to as "Division 39". They are involved in similar illegal activities to their real world counterparts - in Gérard de VilliersGérard de VilliersGérard de Villiers is a French writer, journalist and editor. His SAS series of spy novels have been bestsellers, with his total sales running into more than 150 million. His works have been translated and are especially popular in Germany, Russia, Turkey, and Japan...
's novel Le Défecteur de Pyongyang (SAS series, two volumes)
Further reading
- Michael BreenMichael Breen (author)Michael Breen is an author and journalist covering North and South Korea. He has a regular newspaper column in The Korea Times, an English-language daily in South Korea.-Career:...
, Kim Jong-il: North Korea's Dear Leader, John Wiley and Sons (January, 2004), hardcover, 228 pages, ISBN 0-470-82131-0